IFT - Infratil

[Toddy]

I guess that IFT can now concentrate on becomming a major partner in AIA. More positives than negatives. Why fight regional and central politics when you can have your cake and eat it too.

'The new mayor of North Shore does not support the Whenuapai project.'

[Sideshow Bob]

Thanks Caesius.

Likely going to top up on some more B's, once read the lastest e-mail update......

[Toddy]

Time to take another look at IFT at these prices.

1. It looks like the Victorian electricity prices have come back enough for IFT to start making some good returns from its retail business once again.
http://www.nemmco.com.au/data/avg_pr...ily200710.shtm

2. The TPW SP has had a good run on the back of the govt energy policy, windfarm developments (Otago and Aussie) and the all clear for the Blenheim Hydro development. Current SP sitting well above $9.

3. Wellington Airport is running smoothly and growing, Prestwick numbers look strong and there is new interest in AIA from IFT management. Kent and Lubeck are less significant longer term punts.

4. With the price of pertrol at the pump climbing we should start to see a direct impact on the number of Aucklanders/Wellingtonians starting to leave their cars at home and taking public transport to work. This sector is looking better by the day.

5. The share placement was successful leaving IFT with plenty of cash ready to make new acquisitions as opportunities present themselves.

6. ENE is back on track with all of its developments and the Aussie sharemarket is showing renewed interest in this stock.


In summary, the house is in good order and in my opinion its only am matter of time before we see another re-rating of IFT.

[Caesius]

http://www.nzherald.co.nz/section/3/...ectid=10474429

The New Zealand Superannuation Fund and infrastructure investor Infratil have further increased their combined stake in Auckland Airport, a notice to the NZX yesterday showed.

What? I see no such notice? The only announcement from the 6th was a new director. Does the media get this info before investors?

Very confused.

[Toddy]

http://www.nzherald.co.nz/section/3/...ectid=10474429



What? I see no such notice? The only announcement from the 6th was a new director. Does the media get this info before investors?

Very confused.

Morrison and Co issued a disclosure notice after close on Friday. The NZ Super Fund issued a disclosure notice prior to opening yesterday morning.
The Fund is buying up more than IFT and Morrison is controlling the stake.
I would love to be able to work out what the startegy is.

The IFT interim is due out any day now. The accompanying commentary may give us a few clues.

[COLIN]

Why are the partly-paids (IFTCB) running at a not insignificant discount to the fully paids? (183 plus the remaining instalment of 100 = 283, which is 12cents less than 295). Makes no sense to me - one would expect to see the partly-paids trading at slightly more than the full-paids, given that there is still the best part of a year until the final inst. is due.
I have sold all my IFT and put the proceeds into IFTCB, thus getting "more bangs for the same bucks". Seems a no-brainer to me - or am I the one with no brains?!
(The dividends, net of tax, would not account for the difference)

[macduffy]

Colin, looks to me like you've discovered a nice little arbitrage.
By the way, I've just cleaned out the offer at 183.

[COLIN]

Colin, looks to me like you've discovered a nice little arbitrage.
By the way, I've just cleaned out the offer at 183.

Smart move I think, my Highland friend.

[Toddy]

I'm waiting on the Sept interim result. I thought that they would have been out this week.

My only concern is what $$ impact the Aussie spot electricity prices have had on the retail business.

TPW results met market expectations, Stagecoach should more or less be inline, Wellington Airport should be growing (before for the AIR landing charges payback), Glasgow good, Kent and Lubeck still sucking up money, ENE building etc.

The market will judge these guys more on the outlook and any fresh future plans revealed.

I hope that the AIA play has not taken up too much of the managements time. (unless its the real thing and they have been foxing to date).

[777]

From stuff.co.nz

Infratil H1 net profit falls 49 pc
Monday, 19 November 2007


Infrastructure investor Infratil has reported a 49 per cent fall in first half net profit to $12.5 million.
The reduction in the six months to September 30 compared to $24.6 million in the corresponding period a year earlier.
It followed a rise in interest costs to $68.9m from $31m, with Infratil saying today that $20m of the interest increase reflected the consolidation of TrustPower.
Depreciation and amortisation was $35.9m, up from $19.8m.
Earnings for the six months before interest, tax, depreciation, amortisation, realisations and impairments, and fair value movements of financial instruments (ebitdaf), was $165m, from $69m a year earlier, Infratil said.
The operating surplus was $82.2m from $29.3m.
Infratil has a majority stake in power company TrustPower, owns Glasgow Prestwick, Kent International and Lubeck airports, two-thirds of Wellington International Airport and a small share in Auckland International Airport. It also has investments in NZ Bus and stakes in Australian power generators and retailers.
The company is to pay a fully imputed interim dividend of 2.5 cents per share.
Infratil said that as a long-term investor, it considered each of its core investment sectors would deliver attractive returns.
The global trend to renewable energy and public transport was only starting, air travel was increasingly within reach of the world's growing middle classes, and restructuring of the Australian energy sector continued, the company said.
"Infratil's businesses are continuing to build long term value through efficient operations and providing excellent services in a manner which ensures widespread community support."
Developments during the half-year illustrated the disparate nature of its businesses and the relative complexity in measuring their performance, Infratil said.
As at September 30 debt comprised 42 per cent of Infratil's capitalisation. That reduced to 39 per cent if the proceeds of the October issue of partly paid shares was included.
The issue of new shares was undertaken to ensure Infratil was well placed to be able to take advantage of opportunities should current financial market volatility result in further deterioration.
With that possibility in mind, the company had started to purchase hedges against equity market risk, with $1.5m of those hedges expensed during the half year, Infratil said.
Infratil shares closed at $2.93 on Friday, having ranged between $2.26 and $3.25 in the past year.
The company said today that from next June it would stop issuing quarterly reports and work to upgrade the quality and materiality of its monthly reports.
Reporting had been done quarterly since 2004, but that frequency had attracted some negative feedback from share analysts and institutional investors.
Investors and financial analysts interviewed said the two quarterly reports were not of particular benefit, given the ongoing information Infratil provided about its operations, Infratil said.
- NZPA